Ethanol has the same chemical properties whether produced from corn grain, sugar cane or wood chips and crop remnants. Ethanol produced from the starch in corn (as it is predominantly produced in the U.S.) also has a "positive energy balance" insofar as the energy cycles inherent for its production are at least the same as its energy yield. Ethanol should be used as fuel compared to straight gasoline and as an alternative fuel for reducing air pollution because ethanol oxygenates the gasoline fuel and is theoretically a cleaner addition to the fuel. Ethanol from wood chips and crop remnants, however, actually improve energy balance because they require less fossil fuel energy to produce ethanol than using the starch from corn.
Yes, ethanol should be used as fuel because it is a lot better for the environment than crude oil. Ethanol can be used again and again because we can always make more. This is unlike the crude oil that only exists in the world in limited amounts. The use of ethanol is promising.
If consumers want to purchase ethanol as a fuel source then they have the right to. Therefore, farmers can sell their corn for ethanol production to meet demand. The government does not need to mandate what type of fuels that consumers may or may not purchase. Many do not like ethanol but it should not be banned for those that do.
Ethanol should not be used as fuel, at least it should not be federally subsidized with tax dollars. If private companies want to invest in making ethanol fuel and customers are ready, willing and able to buy it then by all means go ahead and sell it. Otherwise, stop stealing from my wallet to pay for this nonsense.